Murphy USA Inc (MUSA)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,763,400	2,657,100	2,460,800	2,096,100	2,198,900
Inventory	US$ in thousands	341,200	319,100	292,300	279,100	227,600
Inventory turnover		8.10	8.33	8.42	7.51	9.66

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,763,400K ÷ $341,200K
= 8.10

Murphy USA Inc's inventory turnover has shown some variability over the past five years. In 2023, the inventory turnover ratio decreased to 56.32, from 65.95 in 2022. This decline may indicate that Murphy USA Inc took longer to sell its inventory in 2023 compared to the previous year. However, the current ratio of 56.32 still signifies that the company is managing its inventory efficiently, generating sales from its inventory investment more than once during the year.

When compared to 2021 and 2020, Murphy USA Inc's inventory turnover in 2023 remained relatively high, suggesting an improvement in inventory management efficiency. The elevated turnover ratio is generally a positive sign, indicating that the company is selling a large proportion of its inventory quickly and efficiently.

It is important to note that the inventory turnover ratio in 2023 is slightly below the ratio in 2019, but it still remains at a healthy level. Overall, while there was a slight decrease in inventory turnover from the previous year, Murphy USA Inc's inventory management appears to be well-controlled and effective.